Here are today's directional views from the global research desks of Trading Central! These are starting points for your own research to identify opportunities that make sense for you. Like what you see? Feel free to forward this to a friend!
Market Wrap: Stocks, Bonds, Commodities
On Tuesday, U.S. stocks advanced further ahead of the Federal Reserve's widely-expected 25-basis-point interest-rate hike. The Dow Jones rose 26 points (+0.08%) to 35,438, posting a 12-session rally, the longest one since February 2017.
The S&P 500 gained 12 points (+0.28%) to 4,567, and the Nasdaq 100 climbed 113 points (+0.73%) to 15,561.
The U.S. 10-year Treasury yield added 1.2 basis points to 3.885%.
Semiconductors (+1.91%), materials (+1.76%), and software & services (+1.24%) stock sectors gained the most, while automobiles (-1.54%), banks (-1.44%), and real estate (-0.88%) sectors underperformed the market.
General Electric (GE) rose 6.27%, as the industrial conglomerate reported higher-than-expected second-quarter revenue.
NXP Semiconductor (NXPI) rose 4.27%, as the semiconductor firm's quarterly sales and earnings exceeded market expectations.
3M (MMM) gained 5.33% after the diversified conglomerate raised its full-year profit forecast.
F5 Networks (FFIV) also climbed 5.84% after posting upbeat quarterly results.
PacWest Bancorp (PACW) plunged 27.04%, while Banc of California (BANC) jumped 11.17%. The Wall Street Journal reported that Banc of California is in advanced talks to buy PacWest Bancorp.
UPS (UPS) fell 1.94%. The global package delivery firm reached a tentative agreement with the Teamsters union to avoid a potential strike.
Spotify Technology (SPOT) tumbled 14.26% as the music-streaming service provider's third-quarter sales forecast missed expectations.
In after-market hours, Microsoft (MSFT) slid 4% after the software giant provided a lower-than-expected quarterly revenue guidance.
Alphabet (GOOGL) jumped over 6% as the tech giant's cloud-computing unit helped to boost second-quarter results.
Regarding U.S. economic data, the Conference Board consumer confidence index rose to 117 in July (vs 111 expected), a two-year high. The Richmond Fed manufacturing index declined to -9 (vs -2 expected).
In Europe, the DAX 40 rose 0.13%, the FTSE 100 gained 0.17%, while the CAC 40 close 0.16% lower,
U.S. WTI crude futures added $0.90 to $79.63 a barrel, a three-month high.
Gold price advanced $10 to $1,964 an ounce.
Market Wrap: Forex
The U.S. dollar was little changed against other major currencies ahead of the Fed's rate decision tonight. The dollar index was stable at 101.27.
EUR/USD dropped 11 pips to 1.1053. In Europe, Germany's Ifo business climate index dipped to 87.3 in July (vs 87.6 expected),
GBP/USD rose 71 pips to 1.2900.
USD/JPY retreated 55 pips to 140.93.
AUD/USD climbed 51 pips to 0.6790. Australia's inflation rate, to be reported later today, is expected to ease to 6.3% on year in the second quarter.
USD/CHF fell 54 pips to 0.8643.
USD/CAD edged up 4 pips to 1.3172. Canada's data showed that manufacturing sales fell 2.1% on month in June (vs -0.3% expected).
Bitcoin stabilized while trading at levels around $29,200.
Gold Intraday: continuation of the rebound.
Pivot:
1958.00
Our preference:
Long positions above 1958.00 with targets at 1971.00 & 1976.00 in extension.
Alternative scenario:
Below 1958.00 look for further downside with 1953.00 & 1948.00 as targets.
Comment:
The RSI is bullish and calls for further upside.
Crude Oil (WTI) (Q3) Intraday: bullish bias above 78.80.
Pivot:
78.80
Our preference:
Long positions above 78.80 with targets at 79.90 & 80.50 in extension.
Alternative scenario:
Below 78.80 look for further downside with 78.30 & 77.80 as targets.
Comment:
Even though a continuation of the consolidation cannot be ruled out, its extent should be limited.
EUR/USD Intraday: bullish bias above 1.1035.
Pivot:
1.1035
Our preference:
Long positions above 1.1035 with targets at 1.1070 & 1.1085 in extension.
Alternative scenario:
Below 1.1035 look for further downside with 1.1020 & 1.1000 as targets.
Comment:
The RSI calls for a rebound.
Bitcoin / Dollar intraday: as long as 28900 is support look for 29950
Our pivot point stands at 28900.
Our preference:
As long as 28900 is support look for 29950
Alternative scenario:
The downside breakout of 28900 would call for 28490 and 28240.
Comment:
The RSI is above 50. The MACD is below its signal line and positive. The price could retrace. Moreover, the price is above its 20 and 50 period moving average (respectively at 29210 and 29168).
S&P 500 (CME) (U3) Intraday: bullish bias above 4580.00.
Pivot:
4580.00
Our preference:
Long positions above 4580.00 with targets at 4609.00 & 4615.00 in extension.
Alternative scenario:
Below 4580.00 look for further downside with 4568.00 & 4557.00 as targets.
Comment:
The next resistances are at 4609.00 and then at 4615.00.
Tesla intraday: the upside prevails as long as 261.4 is support
Our pivot point stands at 261.4
Our preference:
The upside prevails as long as 261.4 is support
Alternative scenario:
Below 261.4, expect 254 and 249.6.
Comment:
The RSI is above its neutrality area at 50. The MACD is positive and above its signal line. The configuration is positive. Tesla is below its 20 period moving average (268.39) but above its 50 period moving average (265.4).
*Disclaimer: The content of this article is for learning purposes only and does not represent the official position of VSTAR, nor can it be used as investment advice.
